Tooling in the OEM Environment
Unlocking the hidden value in your supply chain
In the automotive, aerospace and heavy equipment OEM environment, investments in tooling can represent more than 50% of the total costs associated with manufacturing a certain part. As most OEM tooling follows a common lifecycle, switching from ‘production’ to ‘service’ to ‘obsolescence’, part production typically moves from high volume/high capacity runs to low volume/ contract short-run operations. As a result of this switch, older tooling is often being relocated to supplier sites, re-sourced, neglected, lost, scrapped or used by someone else. This “churn” can ultimately result in OEMs losing visibility and control of their tooling.
When properly managed, active and obsolete tools are valuable assets for the OEM. The Deloitte Tooling Process (DTP) is specifically tailored to ‘unlock’ tooling revenue by better IP protection & quality control, enhanced ownership claim, scrap revenue, financial control / asset visibility, reduced property taxes, resourcing data, lower PD cost, government audit compliance and cost recovery.
Deloitte has developed a scalable and repeatable process that enables us to react and adapt to variable inputs from suppliers to consistently deliver results. To optimize the value of OEM-owned tooling, our efforts address three areas at distinct times during the tooling lifecycle: tool launch control, tool cost review and tool inventory process. These 3 activities are incorporated in a tooling management system, designed to provide an up-to-date inventory of OEM-owned tooling in the supply chain and to track the tooling throughout its lifecycle.